Mirriad Advertising PLC Strategy Update (0905U)

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RNS Number : 0905U

Mirriad Advertising PLC

27 March 2019

Mirriad Advertising plc

27 March 2019

Mirriad Advertising plc

("Mirriad" or the "Group")

Strategy update

Mirriad Advertising plc ('Mirriad') is hosting a webinar update at 10am on 29 March 2019 for investors and analysts setting out its new strategy and giving an update on changes already underway at the company.

Stephan Beringer, Chief Executive Officer, commented:

" Mirriad has many unique strengths and areas of competitive advantage and its core proposition is more powerful than ever. Mirriad is the only true in-video solution that offers a cross-platform format which looks as real as the content it integrates with. However, the business has been taken on a path to market that was significantly out of touch with its content and distribution partners as well as advertisers and their agencies. A reset is clearly needed. Today I set out a revised strategy showing the path to growth"

Mirriad today provides an update on its new strategy following a detailed review by its new CEO, Stephan Beringer. This strategy reiterates Mirriad's strong market position and its exceptional assets while addressing the ineffectiveness of its previous Go To Market strategy.

The key elements arising from the reassessment of the strategy are:

1. Mirriad has unique, award-winning and patent-protected technology for embedding advertising content into existing video

   2.    Its addressable market in television and on-line video is large and growing 

3. The format is preferred by consumers making it an effective advertising solution that delivers a strong return on investment for advertisers and their brands

4. Use of the Mirriad product opens up significant revenue opportunities for broadcasters/distributors and offers significant strategic benefits to media agencies and their advertiser clients

5. Mirriad's Go To Market strategy has historically been flawed. There was previously a lack of focus on the demand side of the market (media agencies and brands/ advertisers) and the company had spread itself over too many markets

   6.    To address these issues the company will: 

a. Implement a revised Go To Market strategy to accelerate demand by engaging with clients and media agencies as channel partners

b. Build scale by attracting additional linear and digital distribution partners as well as content producers to create a rich and dynamic marketplace. In parallel accelerate technology platform automation and eco-system integration

c. Focus on core markets and the right kind of revenue. The company will focus on markets with high per capita advertising spending and in particular the USA, the UK, Germany, France and China

d. Pursue one vision, one strategy and one plan that focuses the company on its path to success and ensures that all resources are aligned to the opportunity

7. The company has already started pursuing its new strategy and, together with the new CEO and President, we have:

   a.    Appointed a new CTO, joining April 2019 
   b.    Exited Brazil 
   c.     Exited India commercially 
   d.    Streamlined its operational teams 
   e.    Put in place new management in the USA 
   f.     Put in place a new organisational structure in Europe 
   g.    Started to implement a new organisational structure in China 
   h.    Taken steps to integrate its product and technology teams 

8. The company believes it has a strong investment story based on this clear strategy for long term growth, unique technology that embeds rather than overlays video, a product which audiences accept and a substantial market opportunity with favourable industry dynamics.

9. The changes and expected changes, will be cost neutral. The company believes its core cost base will not alter substantially as it scales over the next two years. The company disclosed cash holdings at the end of June 2018 of GBP22.1m and cash consumption in the first six months of 2018 of GBP6.7m. It will publish full year results in early May which will show that cash consumption continued at a similar rate in the second half of 2018. Early trading in 2019 is in line with the company's budget and Q1 2019 revenue has surpassed H1 2018 revenue.

About Mirriad

Mirriad is an established computer vision and AI-powered platform company, built on Academy-Award winning entertainment tech, with 14 patents. Using sophisticated technologies, Mirriad connects people with brands, through seamless ad insertions in popular linear and digital content. Advertisers can now reach very large target audiences in a contextually relevant way without interrupting the viewing experience.

Research has consistently shown in-video advertising to be highly effective for the marketer and preferred by audiences on TV, online, and mobile.

Mirriad is headquartered in London, with offices in New York, Paris, Munich, Mumbai, and Shanghai.

Enquiries:

 
 Mirriad Advertising plc              Tel: [phone] 
  Stephan Beringer, Chief Executive 
  Officer 
  David Dorans, Chief Financial 
  Officer 
 Numis Securities Limited             Tel: [phone] 
  (Nominated Adviser & Broker) 
  Nick Westlake 
  James Black 
  Hugo Rubinstein 
 Hudson Sandler LLP                   Tel: [phone] 
  (Financial Public Relations) 
  Daniel de Belder 
  Bertie Berger 
 

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March 27, 2019 03:00 ET (07:00 GMT)